US economy

Trump renews attack on Fed over interest rates

President Donald Trump renewed his offensive against the Federal Reserve and chairman Jay Powell on Monday, saying it is surprising that the US central bank “is even considering” raising interest rates again this month.

“It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!,” he said in a tweet just a day before the start of the final Fed policy meeting of the year.

US presidents have typically refrained from commenting on the Fed’s decisions in an effort to emphasise the bank’s independence from political pressure. 

But in a marked departure from his predecessors, Mr Trump has voiced his opinions on the Fed’s actions and his unhappiness with the strength of the US dollar on multiple occasions this year.

He took aim at the Fed earlier in October amid one of Wall Street’s worst sell-off in years, calling the US central bank at various turns “out of control”, “crazy” and “his biggest threat.”

Having already raised rates three times this year, the Fed is widely expected to increase rates one more time this week. However the outlook for further rate rises in 2019 has become murkier amid trade worries, market turmoil and what has been deemed as dovish comments from Mr Powell.


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